China Coal Energy Company Limited

This meeting is actually faced with all the investors. We would like to remind you that you all need to rationally understand the market. And now we will have this Q&A session. I also have the host to make the speech.

Welcome.

Dear shareholders and investors, good afternoon. I am Zhang Qun from China Coal Energy Limited. Welcome you all to come to this 2022 annual performance briefing. I sincerely thank you for your long-term concern and support for our company. Today we have with us Mr. Zhao Rong, Global President and Non-Executive Director of the company, Mr. Chai Zhao Ling, Chief Financial Officer and relevant leaders in charge of the company's security affairs, planning, development, finance, co-division, co-chemical division, sales center, and chemical marketing center, and Now I would like to introduce the companies of performance in 2022. So for all the data except for this specific explanation, they are all calculated according to the China accounting standards. So the first is the operating performance in 2022. In 2022, our company read the recently implemented the decision-making and deployment of the CPC Central Committee in the State Council. Adhered to this high-quality development, fully implemented development idea of improving efficiency by stock and incremental transformation in overall plans to promote the reform and development of the production operation to control costs and the deep link management. The company's coal production enterprise actively released advanced production capacity. and coal chemical enterprises make overall arrangements for production equipment to maintain this safe, stable, and efficient operation. Equipment enterprises have further promoted the transformation and upgrading of this high intelligence and continuously optimize the product business structure. So the finance, the companies will continue to promote this financial innovation. So the main production operation data have all achieved the great successes again, maintaining high quality development trend in steady progress. So now I'm going to share with you this main production on the patient data. For the coal production and sales volume, it's actually reaching 119 million tons up by 4.97 million tons or 4.4% Y on Y. So the sales volume of a commercial coal was 263 million tons, a Y on Y decrease of 43.85 million tons or 14.3% among them. The sales volume of self-produced coal was 120 million tons YOY increased of 7.3%. Buyout trade coal sales reached 130 million tons down 29.6% YOY. Import and export and domestic agent reached 14.39 million tons up by 14.2 YOY. So selling price of coal products, the average is 11.4% of the increase. The average selling price of buyout trade coal was 812 yuan per ton up by 6.7% compared with the same period of last year. So the cost of coal products and the unit sales cost of the company's self-produced coal is 322.84 yuan per ton, up by 0.6 yuan, basically the same as last year. So the production and sales of major coal chemical products, the output of pollen leffin was 1.48 million tons, up by 1.1%. Sale volume was 1.469 million tons, up by 0.5%. So, Urea output was 1.834 million tons down by 10.5%. Sales volume was 1.792 million tons down by 19%. So the output of methanol was 1.879 million tons up by 21.6%. Sales volumes was 1.855 million tons up by 21%. So we can see that the price of main coal chemical products, the sales price of polyethylene is 7,401 yuan per ton down by 120 yuan per ton. and down by 1.6%. The sales price of urea was 2,612 yuan, up by 384 yuan, up by 17.2%. The sales price of methanol was 1,931 yuan per ton, an increase of 4.7%. And the sales price of ammonium nitrate was 2,632 yuan, and up by 37.2%. So the cost of the main coal chemical product, the unit price of polymethanol product was 6,884 yuan, up by 2%. The unit sales cost of urea is 1,882 yuan, up by 186 yuan, up by 11%. So the unit sales cost of methanol is 2,044 yuan per ton, so up 116 yuan per ton, YOY. and the unit sales cost of ammonium nitrate is 1032 yuan down by 25.3%. So I would like to briefly introduce this equipment business. So in 2022, the output value of a coal mine equipment was 9.96 billion yuan, up by 5.3% YOY. Operating income was 10.6 billion yuan. YOY increased by 2.3%. So the financial business, the operating income was 2.386 billion yuan, increase of 695 million yuan, or 41.1%. So for other business conditions, for example, like electric power, aluminum processing equipment, and bidding service and railway transportation, achieving the operating income of 7.583 billion. So now I'm going to share with you this major operating financial indicators. In 2022, we have reached 220.577 billion yuan. and the total profit was 32.897 billion yuan, up by 26.2%. The net profit attributed to shareholders of listed company was 18.241 billion yuan, YOY increased over 32.8%. The basic earning per share was 1.238 yuan, YOY increased over 32.7%. The weighted average return on equity was 14.88%, up by 2.17%. So the asset liability ratio was 51.5% and down by 4.2%. So under International Financial Report standards, pre-tax profit was 34.583 billion yuan, up by 6.714 billion yuan YOY. So the profit attributable to the shareholders was 19.719 billion yuan, up by 4.547 billion yuan. The basic earning per share was 1.49 yuan up 0.35 yuan YOY. So the capital liability rate is 34.3%. So compared with last year, so the major increasing factors are as follows. The first one is the price of self-produced commercial coal has increased by 8.817 billion yuan and the sales volume of self-produced produced commercial coal increased by 2.614 billion yuan. Investment income increased by 1.495 billion yuan. And chemical business increases 488 million. And we have already got reduced profits, and now we have got about 4.852 billion yuan for this provision of impairments. and then tax and surcharges increased by 1.422 billion. Management expense increased by 786 million yuan. Now operating expense increased by 360 million. R&D increased by 105 million yuan. Let's talk about this key project. So we have this Da Hai Zi mine with the out... put annually reaching for 15 million tons of high quality, and it has this trial operation as a whole, and the construction has been scaled up to be increased to 20 million tons, and they have already passed this on-site review. So there's the construction of Li Bi, and the anti-ball, this low... calorific value coal power generation project with the annual output of 4 million tons of as recite has progressed smoothly so Shanxi Yulin Coal Chemical Industry Phase II project was an annual output of 900,000 tons of polyolefin has completed all external formalities for approval and we have this phase one Shanghai Energy Company was basically completed and connected to the grid. And we also have this 100MW agricultural PV complimentary project to Pingshuo Group started and that have already been listed in this grid-connected new energy project in Shanxi Province. So now let's talk about this CAPEX and the planning arrangement in 2023. In 2022, the companies of CAPEX is closely focused on these four major sectors of coal, coal chemical industry, electric power, and coal mine equipment, including capital construction projects. So we have about 14.708 billion yuan with 9.271 billion yuan completed and among them we can also see that the coal sector completed 6.704 billion yuan and the coal chemical sector completed 326 million yuan and for other different sectors they have reached over 1.148 billion yuan and the company's planned capex in 2022 is 18.02 billion yuan. Its increase of 8.749 billion yuan compared with the actual completion in 2022 94.37% YOY increase of 3.312 billion yuan compared with the planned capital expenditure in 2022 up by 18.38% YOY. So the coal sector plans to complete the 10.456 billion. Coal chemical sector 3.804 billion. The power sector plans to complete 1.883 billion. The energy sector plans to complete 1.4 billion yuan and the rest is complete the rest of 0.5 million. And then we also could do this about in 2022, the company contributed to this, the dividends, according to this net profit of this stock exchange to have issued this cash dividend ratio, which 30% was a total dividend of a 5.0, for 84 billion yuan, and it's actually 0.414 yuan per share, including taxes. So now I'm going to share with you this production operation plan, a key work arrangement of the company in 2023. Now let's first talk about this in 2023 overall plan. The company adhered to this general tone of striving for progress while maintaining stability, fully implemented the development idea of improving efficiency by stocking the incremental transformation, and strengthened this lean management, deepened enterprises, and then we also hope to have about 125 million tons and for this polyolefin produce and 1.9 million tons of urea and at the same time we will actively take measures to scientifically control our costs and strive to achieve this good business result without major changes in the market. In 2023, The key work, the company will focus on high-quality development, further promote the development idea of stock efficiency improvement and incremental transformation, and accelerate the construction of this world-class energy enterprise. So first, around this 14th or 5-year plan, we will accelerate the construction of demonstration basis of a co-electricity, JV, co-electricity, and Renewable Energy, JV, and continuously optimize the layout of industrial structure, improve the capacity of energy security supply, accelerate this low-carbon green transformation. The second is to thoroughly implement the new round of state-owned enterprise reform tasks, solidly promote the special work of improving the quality of listed companies controlled by the central government, and that we hope to have this high-quality development with a more sound and efficient market-oriented and legal operation. So the third is to continue to strengthen the innovative drive and to continuously optimize the system and mechanism of scientific and technical innovation, actively integrate international scientific and technological innovation. So the fourth is to adhere to this system concept and bottom-line thinking, continue to strengthen the work of state production, ecological environmental protection, energy conservation, and emission reduction to solve all those risks. Fifth is adhere to this world-class benchmark. Continuously improve this level of refined and lean management. Continuously improve the quality and efficiency and successfully complete this annual production and operation objects. So the sixth is continuously improve this level of corporate governance and the quality information disclosure. Further improve this communication with investors, the strengths and market management, and maintain a good image of the capital market. So dear shareholders, And the management and all the colleagues of the company were keeping in mind our initial mission, make persistent efforts, forge ahead, actively participate in the practice of Chinese style of the modern energy, to give back to all shareholders and investors with our new achievements in building the new world-class energy enterprise in high-quality development. That's all for me. Now let's come to the Q&A session. Welcome for all your questions. Welcome. So, actually, we... could have this telephone questions first and then this online questions later. So please first press star and then press one. So for online participants, you would better just use this word questions or they could just use this raise the hand button and then raise your hand if you have some questions. So for this telephone participants, please first press star and then press one. So for these online participants, you could type your questions in this chat box, or you could directly unmute yourself.